Ready Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the finishing department follows: What are the equivalent units for direct materials?

Question

Ready Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the finishing department follows:  What are the equivalent units for direct materials?

Quizplus · Accepted Answer

Since Ready Company adds direct materials at the beginning of the process, the equivalent units for direct materials will be the same as the equivalent units for the first department, which is 61,000 units.

Ready Company Adds Direct Materials at the Beginning of the Process